Question

John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay?

Answer 1

a mill equals 0.001 so 110,000*.025 = $2,750 tax paid.

Answer 2

A condominium is a building containing apartments that are owned by the people who live there, or one of these apartments. In this problem, that condominium has an assessed value, that is the dollar value assigned to a property to measure applicable taxes.

This assessed value is $110,000. On the other hand, the tax rate is 25 mills per $1.00. We know that a mill equals 0.001. Therefore:

(110,000)(0.025) = $2,750 tax paid.